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A company has a Trucking Services Department that provides transportation to haul ore from the company's mine to its two steel mills the Northern Plant
A company has a Trucking Services Department that provides transportation to haul ore from the company's mine to its two steel mills the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total cost cosists of $0.29 per ton variable cost and $335,000 of fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period. the Northern Plant requires 70% of the Trucking Services Department's capacity and the Southern Plant requires 30%. During the year, the Trucking Services Department actually hauled 130,000 tons of ore to the Northern Plant and 50,000 tons to the Southern Plant. The Trucking Services Department incurred $384,000 in cost during the year, of which $54,000 was variable cost and $330,000 was fixed cost. (All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or loss of one thousand.) How much of the Trucking Services Department's variable costs should be charged to Northern plant? $ How much of the Trucking Services Department's fixed costs should be charged to Soouthern plant? $
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